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Dell to eliminate company bonuses

Computer company Dell is planning to eliminate company bonuses for employees in order to cut operating costs, a leaked memo from the firm's management has revealed.

According to the internal memo sent to employees, the Dell's chief executive Michael Dell said that poor results last year meant that the company had to find ways of reducing expenses, with bonuses the first target of the cost-cutting measures.

"We have a tough couple of quarters ahead. We didn't get here overnight and we won't fix things overnight either," Mr Dell said in the memo.

"We had great efforts, but no great results. This is disappointing and it is unacceptable. The result is that there will be no bonus this year."

He also cited increasing bureaucracy within the company as a problem, slowing the company down and adding to the costs.

A spokesman for Dell confirmed that the memo was authentic, but disputed further claims that it was planning to reduce the size of its management team.